Personal vehicle but I use it 30% for business. eg last tax year did roughly 12000 miles personal - 3940 miles business.
Thank you for your prompt reply.
You did just under 4,000 business miles last year and this equates to just under £1,800 (tax free) in mileage claim, if you were to charge the company for use of own car.
As the vehicle is your possession and not a company asset, any contribution towards it upfront or in the form of reimbursement would be deemed a payment to you that would be taxable, unless it is
- Repayment of director’s loan a/c
- Salary (taxed at source)
- Dividend out of taxed profits
The operating cost of a vehicle that is not a company asset would be made up of payments to you for business mileage claimed based on your mileage per annum.
I hope this is helpful and answers your question.
If you have any other questions, please ask me before you rate my service – I’ll be happy to respond.
But that now worries me as the company last year reimbursed me 30% of petrol and 30% maintanance. was this wrong to do so?
Hi again - last question - promise - they HMRC wont tax me on that reimbursement of petrol and maintenance costs will they ?
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